DIRECT STEAM COMMUNICATION.

Globe, Volume XXIII, Issue 2312, 1 September 1881, Page 4

DIRECT STEAM COMMUNICATION.

[PHKB3 ASSOCIATION TBLEGBAM.I "WELLINGTON, August 30. The following is the report of the joint coram it tee upon a direct steam service with Great Britain :—The committee to whom it ■was rof&rred to consider and report as to the beat means of establishing a direct steamer aervica between Now Zealand and theMothercountrj' has conferred with a seleci committee appointed by the other legislative ohamber, and has given careful consideration to tho subject and taken evidence thereon, ii'hich is appended. They have agreed to recommend to the favorable consideration of Parliament the following resolutions:—l. That six ships would be noeeasarv for such service. 2. That such ships must be built specially for the New Zealand trade, of a draught of water that would enable them to enter the chief ports in the colany. They should be of at least 4000 tons register, and in every respect of tho highoat class. They should oombine the no"-«isary requirements for the carriage o. passengers, mails, and cargo at a aeap.:ig speed of not less than 12i knots. 3. 3. it the probable capital whioh, would be r-.-;'iired for the efficient equipment of suoh S'-i'ioe would not exceed one million sterling. 4. That the Government should be »aipowered to invite tenders and enter into an agreement with any persons who may be prepared to undertake such service. 5. That the basis of such agreement should be a guarantee on the part of tho colony for not exceeding seven years of a minimum rate of interest, say 6 per cent, per annum, upon the actual amount of the cost of the Bteamers, provided such guarantee_ shall not be upon an amount exoeedingone million, and that the net annual earnings of the service shall go towards the reduotion of the payment of interest ao guaranteed : provided also that in tho event of suoh net earnings being in excess of the 6 per cent, guaranteed sacii excess shall belong to the contractors. In reckoning the net earnings, not more than 10 per cent, shall be allowed for depreciation. 6. In the event of contractors being found within the colony w iiTjg to take the service on the afore-Eu-ationod basis, ceteris paribus, a preference should bo given to Buch. 7. The committee ha j obtained an accurate return ot the imports and oiports between New Zealand and the Cuited Kingdom direct during the past year. Prom this it will be seen thit 198 direct ships have been employed during the year, carrying 5904 passengers and 229,199 tons of cargo. The eafimated value of the oargo amounts to £8,533,552. Estimates have also been procured as to the probable increase of exports which will result from the successful application of the free zing prooess. It is estimated that at least 500 tons of frozen meat will be shipped monthly. It further appears in evidence that a considerable amount of merchandise is regularly finding its way from Europe to New Zealand by steamer to Melbourne, which it may fairly bo presumed would be shipped by direct steamer, were suoh a service established. 8. Taking the postal receipts into consideration, and without speculating upon the extension of oarcommeroe, whioh is year by year developing itself more and more, the oommittee is of opinion that e-»9u at the outset the earnings of a well conducted steam service are likely to be such as w;ulcl materially reduce the sum payable in rtapeat of the colonial guarantee. 9. Aa indicating some of the collateral advantages whioh would result to the colony from the establishment of the service now in question, the committee would call speoial attention to two statements whioh appear in the evidence of the managing director of the Union Steam Ship Company, to the effect that eaoh vessel outward would take 2000 tons of New Zealand coal, and that the vessel's disbursement in the colony would be £3OOO eaoh trip. 10. Inasmuch as from eighteen months to two years from the date of contract must elapse before the actual working of the proposed service could be initiated, the committee would recommend that the Government be authorised before the olose of tho present session of Parliament to take the necessary action in the matter.